GLOBALSTRAT (08007) plans to merge shares on a "10-for-1" basis and issue up to 182 million shares for rights issue.

GLOBALSTRAT (08007) has announced that the board of directors has proposed a share consolidation, with a basis that every 10 existing issued and unissued shares with a par value of HK$0.01 each will be consolidated into 1 share with a par value of HK$0.10. As of the date of the announcement, the company's authorized share capital is HK$80 million, divided into 8 billion shares with a par value of HK$0.01 each. Out of these, 455,860,000 shares have been issued and fully paid or accounted for as fully paid. After the share consolidation takes effect, assuming that the number of existing shares remains unchanged from the date of the announcement to the effective date of the share consolidation, the authorized share capital of the company will become HK$80 million, divided into 800 million shares with a par value of HK$0.10 each, out of which 45.86 million shares (issued and fully paid or accounted for as fully paid) will be issued. Following the share consolidation, the company proposes a rights issue, where shareholders are offered the opportunity to subscribe for up to 182 million new shares at an issue price of HK$0.28 per share, raising a total amount of approximately HK$51.1 million (before expenses). The issue price represents a discount of approximately 12.5% compared to the theoretical closing price of HK$0.32 per consolidated share based on the closing price of HK$0.032 per share on the last trading day on the Stock Exchange. The rights issue is only available to eligible shareholders and will not extend to ineligible shareholders. If all shares are fully subscribed, it is estimated that the net proceeds from the rights issue will amount to approximately HK$48.8 million (assuming that the number of issued shares remains unchanged on or before the record date). The company plans to utilize the net proceeds as follows: (1) around HK$24 million for the redemption of outstanding bonds issued by the company; (2) approximately HK$4 million for the payment of outstanding professional fees; and (3) around HK$20.8 million for general working capital of the group.